Gold and GemStone Mining Inc. -- Sierra Leone: One of the Most Attractive Destinations for Investment in Africa
05 Dicembre 2012 - 5:55PM
Marketwired
Gold and GemStone Mining Inc. (OTCQB: GGSM), a gold and diamond
exploration and development stage mining company focused on Sierra
Leone, West Africa, has commented today on the growing economic
opportunity within the mining industry of the Country in which it
plans for full scale alluvial mining operations to begin in Q2
2013.
Sierra Leone has emerged as one of the most stable countries on
the African continent. Its democracy is thriving, the economy is
growing and the climate for investment is being transformed. With
its verdant land, stunning beaches, fertile seas, vast mineral
resources and innovative people -- Sierra Leone is truly a land of
opportunity.
Included in the top ten tourist destinations to visit in 2009 as
published by the Lonely Plant, the country has not only benefited
from increasing tourism but has continued to attract significant
attention from global business and investors alike. In an annual
survey conducted by the World Bank across a total of 183 Countries,
the level of Investor Protection Sierra Leone, ranked 29th out of
183, was higher than a number of developed Western European
Countries including Germany and Switzerland and ranks alongside
Denmark & Sweden and on average 40% higher than the rest of Sub
Saharan Africa. Sierra Leone also ranked a respectable 79th out of
183 in the ease of starting a new business.
Oil, first discovered in 2009, could be a game-changer for
Sierra Leone. Currently three companies are conducting exploratory
operations and the Ministry of Finance expects oil in commercial
quantities to be verified in 2012. If so, this could lead to
significant investment in the country, which would necessitate a
reassessment of Sierra Leone's projected long-term growth
trajectory.
In a recent report issued by the Standard Chartered Bank
forecasts show Sierra Leone is set for rapid growth; with forecasts
at 30% growth in real GDP in 2012 Government forecasts from the
Ministry of Finance and the IMF go beyond this and estimate a
potential one time surge in real GDP growth of 51% y/y in 2012
owing to new iron-ore production from the Tonkolili mine which
would still put Sierra Leone among the fastest-growing African
countries.
The Country continues to rebuild its reputation following the
bitter civil war in the late 1990s. The war impacted severely on
the mining sector but, since the cessation of rebel activity and
re-establishment of government control in early 2002, the mining
industry has been targeted by the Sierra Leonean government as a
priority for re-development. A concerted effort has been made
through capacity building and institutional reform to enhance the
country's attractiveness to investors and increase foreign direct
investment. Parliamentary elections took place in August/September
2007. The elections were declared to be open and fair by
international observers and a peaceful transition of power has
taken place to the main opposition party. The local government
system is based on chiefdoms and patrilineal descent. A good
working relationship at local level is essential for the smooth
running of exploration and mining projects. GGSM has forged
alliances at the very highest levels of Sierra Leonean society.
The Strategy and Policy Unit of the Ministry of Mineral
Resources in Sierra Leone predict that annual production growth
after 2012 will be 4% for diamond production and 10% for gold.
Additionally they forecast that Mineral exports could rise to
$1.2bn by 2020 from a base of $230m in 2007. Mineral exports per
Capita are set increase to $170 in 2020 for $34 in 2007, an
increase of 400%.
Strong global demand for minerals, underpinned by rapid growth
in emerging economies such as China, Brazil and India, has fueled
an investment boom in the mining sector. Of particular interest to
Sierra Leone is the dominance of junior exploration companies in
this revival, since they will be most likely to underpin the
exploration investments needed to establish Sierra Leone's mineral
potential, and the increasing appetite of major mining companies to
make large investments in high-risk, emerging economies. Data
issued by the Ministry of Trade and Industry in combination with
Sierra Leone Import and Export Promotion Agency (SLIEPA) supports
the growing investment stating that the potential pipeline across
all sectors was over US $10 billion. Sierra Leone has now become a
melting pot of oil, iron ore, diamonds and other investments.
The Government has taken positive action to help restore
confidence and promote growth across the mining industry all
boosted with the long standing return to political stability in
Sierra Leone. With a new investment code introduced in 2005
focusing on the promotion of value added activities and joint
ventures with foreign investors the Government is working to
rejuvenate the domestic mining sector and to allow it to once again
underpin the formal economy and support the Government's
developmental objectives that include.
The successful implementation of an IMF-supported economic
reform program has established a sound macroeconomic environment.
Inflation has been kept under control, the exchange rate has
stabilized, and access to foreign exchange has improved.
About Gold and GemStone Mining Inc.
Gold and GemStone Mining, Inc. is an exploration stage company
that will engage in the acquisition, exploration, and development
of diamond and gold properties around the world. Integral to GGSM's
plan is the formation of strategic alliances and joint ventures
with gold and diamond mining companies for the acquisition(s) of
new mining concessions, equipment and human capital. The company's
management intends to focus on strengthening GGSM's position as a
player in the gold and diamond mining industry. GGSM is committed
to providing maximum return for shareholders while working closely
within the local communities it has mining operations to ensure
local economies are also benefiting and can flourish from GGSM's
activities.
FORWARD-LOOKING STATEMENTS: "Safe Harbor" Statement under the
Private Securities Litigation Reform Act of 1995: Statements
relating to the company's business activities and other statements
in this press release are forward-looking statements within the
meaning of the Securities Litigation Reform Act of 1995. Such
statements are based on current expectations about the Company's
business. Words such as expects, anticipates, intends, plans,
believes, estimates and similar words and expressions are intended
to identify such forward-looking statements. These statements
involve risks that are difficult to evaluate. Actual results can
vary from descriptions herein due to many factors including changes
in metal prices and business conditions; changes in laws and
regulations; problems encountered in exploration and obtaining
permits; changes in the competitive environment; technological
advances; shortages of skilled workers, drill rigs and equipment;
the need for additional capital and other risks listed in the
Company's Securities and Exchange Commission filings under "risk
factors" and elsewhere. Forward-looking statements speak only as of
the date they were made. The Company does not undertake any
obligation to update forward-looking statements.
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Contact Information: www.ggsmining.com Investor Relations
Morningstar Corporate Communications USA toll free +1 (888)
551-4115 +1 (646) 405-4805 ggsm@mscorpcommunications.com
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